Struggling with debt? Ask a debt advisor a question

Dawnie_Donut · 22 February 2012 at 11:15AM

Thank you Pavan for your reply to my post from Monday. I will follow up on your advice.

I feel more confident already.
Thanks

StepChange_Pavan · 22 February 2012 at 1:05PM

bluemonday3 wrote: »

Hi
I am looking for some advice. I have been in a DMP with CCCS since Sept 2009 and now all but one creditor has frozen interest. Creation which was a store card have reduced interest but in the last 2+ years I have repaid them £814.79 but only reduced the debt by £82.65!!
I am constantly asking them to freeze this but they do even respond.
I have written to FOS but not sent this yet as I have looked at the CCA again that I requested in 2010 and all they have sent me is the CCA with my name & address printed on it but without my signature or any other details. This was apparently from 2001.
I have a dilemma in that as much I want to clear the debt, this is going to take forever. What would happen if I stopped making payments? I am aware that CCCS would frown on this and there is the problem.
Does any one know the consequences of not paying and also what CCCS would do, I am assuming that I would lose their support?
Sorry this is long winded I feel very stressed about it all.

Hi bluemonday3 and thanks for your post.

Try not to stress as there will be a solution for you. It’s a bit tricky as you can’t choose to not pay one of your creditors whilst on a DMP.

As I don’t have access to all your information, it’s best that you get in touch with our support team as they can look into this further for you. If you prefer, you can send us your client reference number to [EMAIL="contactus@cccs.co.uk"]contactus@cccs.co.uk[/EMAIL] and I will get someone to contact you.

Kind regards,
Pavan

fermi · 22 February 2012 at 1:18PM

fatbelly wrote: »

It's Section 3.15 of the OFT Debt Collection Guidance and it also states that an unfair practice is "continuing to press a debtor for payment after he has stated that he will not be paying a debt because it is statute barred."

Looks like CCCS are still using the old 2003/5 version. :eek:

CCCS: There is a new version (2011) here:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/OFT664Rev.pdf

I would suggest you update your templates.

samantha.b.mcgregor · 22 February 2012 at 1:36PM

I got into £1300 debt on a credit card with an ex boyfriend who had no job (silly I know, but I was young and in love!). The card and account have been inactive for almost five years and I was under the impression that I had a Direct Debit set up to take the minimum payment from my account each month, as each month (without fail) an amount of about £50-£60 being taken from my current account each month and being paid on the credit card. In a discussion with my branch about a savings account recently, I discovered that there was no such direct debit and these payments were being taken to cover the costs of CHARGES for NON PAYMENT and the account is in COLLECTIONS! As a result I checked my credit rating and it's not good. I have only two other 'debts' - a catalogue (which is active and I pay over the minimum payment each month) and a 0% interest student overdraft from back in the day (which I also pay into each month).

Anyway, I recently learnt about a Capital One credit card with 0% interest on balance transfers for 7 months (up to Sept 2012) and was considering transferring the balance of my existing card to that one to try and pay it off. The problem is that I'm not sure if I will be able to pay it all off and the interest rate post-0% transfer is a whopping 34.9% apr!

Would my credit rating be sufficient after 7 months that I could transfer the remaining balance to another card (on 0% interest) to finish paying it?

I'm determined to be debt free asap but at the moment there seems like no way out! Help please?

StepChange_Pavan · 22 February 2012 at 5:22PM

greebouk wrote: »

Hi, I am really in need of some advice. Between the 2 of us, my husband and I owe approx £25,000 on loans, credit cards and overdrafts. We have been making the payments, although it has been a struggle and has left us with only £20 a week left over, but we have been doing it.

Unfortunately, we have been relying on my husbands overtime, which is now stopping, which basically means we are losing £100 per week. We will not be able to make the payments on the loan, but are scared to default, as 2 of the loans, credit card and overdraft are with our main bank. I know if we do default, they will offet the money and we will not be able to pay our mortgage and other normal outgoings.

We have considered taking out another loan, to consolidate the 2 we have wiht our bank, as they would then not be able to offset if it happens. I am worried if I go to my bank and tell them we are going to have problems, they will not help as they have not been very helpful in the past.

I am at my wits end, we are using the overdraft to make the shortfall in the short term, but this is getting us into more trouble. I suffer with depression and anxiety and am under my doctor for it and I just don't know what to do. I have even thought if I were no longer around, the debts would go with me.

Please, help me

Jackie

Hi Jackie and thanks for your post.

Not being around is definitely not the best solution, and would more likely make it worse for your husband.

There will be solutions available to you and the good thing is that you’ve come to the right place for advice.

Your best option is to open up a basic bank account that’s unconnected in any way and doesn’t have any credit facilitates. You can switch your income and direct debits so they’re all set up from there to remove the risk of offset,

Consolidation isn’t always the best idea as it can make your situation worse in the long term. If you’re already struggling you may not be able to maintain the new payments and it may even be difficult to get accepted for one anyway.

If you’d like us to look at your situation to give you some more detailed advice you can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan · 22 February 2012 at 5:28PM

Rochdale_Guy wrote: »

Hi,

I am now on a DMP with you, with a start date of 1st March 2012.

I have sent all my creditors a letter explaining I am in difficulty and am going on a DMP, with yourselves along with a £1 token payment.

My minimum payments are now due again, before the end of the month (and before my DMP with you starts).

Do I need to make a second round of £1 minimum token payments, as my DMP with you won't start until March 1st?

Please answer ASAP, as it is already the 22nd February.

Also, my Royal Bank of Scotland credit card online banking shows they have charged me £12 for late payment, yet they have paid in my £1 token payment.

Help! What do I do please?

Thank you,
Rochdale_Guy

Client number: xxxxxxxx

P.S. I emailed this to the "client services" address, but haven't had a reply yet.

.
.
.
.
.
.
.

Hi Rochdale_Guy and thanks for your post.

If you can afford to make the token payment, it’s a good idea as your DMP payment won’t reach them until towards the end of March.

The late payment charge will have gone on as you weren’t able to make the minimum payment. If you’ve made them aware of your DMP that’s as much as you can do at this stage.

If you’ve included your client reference number in your email someone from our support team will be in touch with you shortly if there’s anything you need to do.

I you need urgent advice, it’s usually best to call.

Kind regards,
Pavan

loug_2 · 22 February 2012 at 7:47PM

Hi There
This is the 1st time (to the best of my knowledge!) that I have posted here and could really do with some help. I so want to get a grip on my finances and pay off the 3 credit cards I currently have but feel like I am going round in circles never actually paying anything off other than the interest:(

I currently have 3 cards;

Santanda - owe £5114 APR 25.9% & currently paying £105 a month
Barclaycard - owe £4632 APR 16.9% currently paying approx £127 per month
MBNA - owe £13,144 apr 29.9% currently paying approx £320 per month
Total Debt £22,890 Monthly payments £552

I applied for my credit check a few weeks ago and it came back with a 'green' score of 950, the main area that would stop me borrowing is the fact that I currently owe so much money.
This year I have set myself a goal that I will pay at least 15% of debt off, I have some shares from work (£1000) that I am going to cash in and also some jewellry that I estimate to be worth about £750 plus I am hoping to earn some extra bonus.
I started this goal in December owing £22,465, fast forward 2 months and I now owe £22,890 despite me not even using the blinkin cards - aaarghh :mad:
I currently bring home £1200 a month and, after I have contributed to the usual household bills, food, childcare etc I can only just afford to keep paying £550 a month on credit card payments yet never seem to be paying anything off. I could cry for being so stupid as to have got myself in this position again

I have applied for a couple of loans and credit cards in the hope I could just have all my debt in one place with a fixed payment in sight and a small light at the end of a (5 year) tunnel but have been refused for all that I apply for - I am too frightened to apply for any more incase it affects my credit rating.
I am begining to think a dmp is my only option but I am so worried about it affecting our chances if we want to re-mortgage or move house in the next year or so. If my husband found out he will go mad that I have got myself in to so much debt.....I feel so helpless

Can anyone offer any help or advice?
TIA
Loug

unlucky_alf · 22 February 2012 at 10:30PM

We're in a similar situation to most people on here.It's very depressing,but we're determined to get through it somehow. Naively,I went into the bank, thinking they would help. A re-finance loan was discussed, but we were declined. We pay £800 pm credit card minimum payments & £500 pm loans. The re-finance loan would've been £600 pm, leaving us money for food, but they said we wouldn't be able to afford it. This was our last lifeline as the mortgage is maxed.

We have been considering a DMP, but it's a big step and I want to be absolutely sure it's the right decision. We will be credit blacklisted, how long will this be for once the debts are paid off? We haven't defaulted - yet, but it's a matter of time.

I am also going to open another bank account to remove the offset risk. Do I need to tell the new bank about our problems or is that an issue best left undisclosed? Could they refuse to open an account, especially as we've just had a loan refused?

StepChange_Pavan · 23 February 2012 at 12:55PM

samantha.b.mcgregor wrote: »

I got into £1300 debt on a credit card with an ex boyfriend who had no job (silly I know, but I was young and in love!). The card and account have been inactive for almost five years and I was under the impression that I had a Direct Debit set up to take the minimum payment from my account each month, as each month (without fail) an amount of about £50-£60 being taken from my current account each month and being paid on the credit card. In a discussion with my branch about a savings account recently, I discovered that there was no such direct debit and these payments were being taken to cover the costs of CHARGES for NON PAYMENT and the account is in COLLECTIONS! As a result I checked my credit rating and it's not good. I have only two other 'debts' - a catalogue (which is active and I pay over the minimum payment each month) and a 0% interest student overdraft from back in the day (which I also pay into each month).

Anyway, I recently learnt about a Capital One credit card with 0% interest on balance transfers for 7 months (up to Sept 2012) and was considering transferring the balance of my existing card to that one to try and pay it off. The problem is that I'm not sure if I will be able to pay it all off and the interest rate post-0% transfer is a whopping 34.9% apr!

Would my credit rating be sufficient after 7 months that I could transfer the remaining balance to another card (on 0% interest) to finish paying it?

I'm determined to be debt free asap but at the moment there seems like no way out! Help please?

Hi samantha.b.mcgregor and thanks for your post.

Mat came across your question in our inbox and has already sent you a response.

Let us know if there is anything else we can help with.

Kind regards,
Pavan

StepChange_Pavan · 23 February 2012 at 4:14PM

loug wrote: »

Hi There
This is the 1st time (to the best of my knowledge!) that I have posted here and could really do with some help. I so want to get a grip on my finances and pay off the 3 credit cards I currently have but feel like I am going round in circles never actually paying anything off other than the interest:(

I currently have 3 cards;
Santanda - owe £5114 APR 25.9% & currently paying £105 a month

Barclaycard - owe £4632 APR 16.9% currently paying approx £127 per month

MBNA - owe £13,144 apr 29.9% currently paying approx £320 per month

Total Debt £22,890 Monthly payments £552

I applied for my credit check a few weeks ago and it came back with a 'green' score of 950, the main area that would stop me borrowing is the fact that I currently owe so much money.
This year I have set myself a goal that I will pay at least 15% of debt off, I have some shares from work (£1000) that I am going to cash in and also some jewellry that I estimate to be worth about £750 plus I am hoping to earn some extra bonus.
I started this goal in December owing £22,465, fast forward 2 months and I now owe £22,890 despite me not even using the blinkin cards - aaarghh :mad:
I currently bring home £1200 a month and, after I have contributed to the usual household bills, food, childcare etc I can only just afford to keep paying £550 a month on credit card payments yet never seem to be paying anything off. I could cry for being so stupid as to have got myself in this position again
I have applied for a couple of loans and credit cards in the hope I could just have all my debt in one place with a fixed payment in sight and a small light at the end of a (5 year) tunnel but have been refused for all that I apply for - I am too frightened to apply for any more incase it affects my credit rating.
I am begining to think a dmp is my only option but I am so worried about it affecting our chances if we want to re-mortgage or move house in the next year or so. If my husband found out he will go mad that I have got myself in to so much debt.....I feel so helpless
Can anyone offer any help or advice?
TIA
Loug

Hi Loug and thanks for your post.

It’s difficult to say whether a DMP is your best solution without looking at your situation in more detail but offering your creditors reduced payments will affect your credit file.

It’s best not to try and apply for more credit as this could affect your rating further. Consolidation isn’t always the best solution as it can make the situation worse in the long term.

I’d recommend that you get in touch so that we can look at your situation as a whole and explore all of the options that are available to you.

You can call our free helpline on 0800 138 1111 or visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) so that we can give you some more detailed advice.

Kind regards,
Pavan

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